![]() ![]() By the end of 1977, Hydra-Mac had received over 100 reports of engine failures. Onan recommended adjustments in the level or pattern of torque and a side-draft carburetor to replace the down-draft carburetor. According to Steiger, Onan first suggested one, and then two, Belleville washers. In 1976, Onan began its long line of proposed solutions. In the spring of 1976, Hydra-Mac's customers and dealers complained about severe problems such as high oil consumption, overheating, head gasket blowout, warped cylinder blocks, detonation, carburetor problems, and low power. Onan did not reveal Mosimann's opinion to Hydra-Mac, nor did Mosimann for fear of losing his job. Mosimann testified that Onan executives did not pull the NHCV because they wanted to test a prototype in the new 8C. Again, Onan endorsed the NHCV for use in the 8C despite Onan engineer Milt Mosimann's opinion that the engine was not appropriate for such use, a fact not known by Hydra-Mac until trial. When the second failed, Onan, after weeks of testing the failed engine, said that its suggested "fix" would alleviate the problem. When the first engine failed, Onan claimed it suffered from a manufacturing defect. Hydra-Mac: Problems with the NHCV began when Hydra-Mac's first two test engines failed. In total, Hydra-Mac purchased approximately 2,600 engines. IH began to receive loaders in February of 1977.īetween November 1975 and July 1979, Onan delivered approximately 2,556 NHCV engines to Hydra-Mac. Onan acknowledged by letter IH's participation in the project. In 1975, IH agreed to purchase 8C's from Hydra-Mac for marketing as the IH Model 4130 skid steer loader. As the result of Onan's claims about the NHCV, Hydra-Mac was induced to incorporate it into the 8C and began to purchase NHCV's in November of 1975. In the early 1970's, Onan developed a new aluminum NH engine called the "NHCV." Steiger testified that Onan's sales engineer, Milt Mosimann, and an Onan brochure touted the NHCV as a more durable, cooler, quieter, and more reliable engine. ![]() From 1969 through 1974, Hydra-Mac, a small skid steer loader developer and manufacturer, purchased NH engines from Onan for use in its loaders.ĭuring 19, Hydra-Mac's Bruce Steiger designed the 8C, Hydra-Mac's latest model of skid steer loader. Onan manufactures the "NH" series of small internal combustion engines. ![]() Onan appeals from the portion of the judgment awarding $1,881,023 in lost profits and $3,000,000 in punitive damages to Hydra-Mac *849 and $2,751,000 in lost profits to IH. Hydra-Mac also asserted a claim of fraud.įollowing a jury verdict in favor of Hydra-Mac and IH on all claims, the trial court denied Onan's post-trial motions for judgment notwithstanding the verdict, or in the alternative, a new trial, amended or additional findings of fact, or remittitur. Both respondents asserted claims for breach of warranty. (Hydra-Mac) and International Harvester Company (IH) commenced this action against appellant Onan Corporation (Onan) concerning engines purchased from Onan for front end loaders. Heard, considered, and decided by WOZNIAK, C.J., and LANSING and KALITOWSKI, JJ. DeKalb, Smith, Juster, Feikema, Malmon & Haskvitz, Chartered, Minneapolis, of counsel), for Onan Corp. Simpson, Leonard, Street and Deinard, Minneapolis (Henry H. Novacheck, Bowman and Brooke, Minneapolis, for Intern. ![]() Bishop, Oppenheimer Wolff & Donnelly, Minneapolis, for Hydra-Mac, Inc. HYDRA-MAC, INC., International Harvester Company, Respondents, ![]()
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